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Can I move my Defined Benefit Pension into a QROPS? Image

Can I move my Defined Benefit Pension into a QROPS?

August 18, 2021

Although in theory there is nothing stopping you from transferring your UK Final Salary Scheme into a QROPS in practice it's become more complicated to do so.


The Financial Conduct Authority is putting considerable pressure on UK pension providers and indeed tightened its own FCA conduct of business rules to make it increasingly difficult to arrange for a UK defined benefit scheme to be transferred out into a QROPS even for an ‘insistent client’. The situation has been exacerbated by Professional Indemnity Insurers who often exclude the provision of cover for this business activity.


Whilst a final salary scheme provides guaranteed benefits which are lost on transfer to a QROPS arrangement there are instances where the flexibility of an international pension such as a QROPS far outweighs the guaranteed benefits. Some of the advantages are the ability to pass on the residual value of your pension to spouse or family upon death, removing the effect of the UK Lifetime allowance, protecting your retirement income from currency fluctuations and depending on your country of residence the ability to reduce the burden of tax on your pension drawdowns.


If you are a British expat in Spain in need of pension advice or a retirement planning solution speak to one of our specialists about the possibility of establishing an international pension. Give us a call today on +44 207 998 0570 or e-mail enquiries@fwm.gi


More about QROPS find here: https://www.fiduciarywealth.gi/what-we-do/our-services/qrops